VF Corporation (VFC)

Current ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total current assets	US$ in thousands	4,226,950	5,152,710	4,588,080	4,785,870	5,027,020
Total current liabilities	US$ in thousands	3,456,980	3,545,770	3,315,400	2,210,480	3,023,880
Current ratio		1.22	1.45	1.38	2.17	1.66

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,226,950K ÷ $3,456,980K
= 1.22

The current ratio of VF Corporation has shown some fluctuations over the past five years. The ratio declined from 2.17 in March 2021 to 1.66 in March 2020, indicating a decrease in the company's short-term liquidity position. However, in the subsequent years, there was some improvement as the current ratio increased to 1.38 in March 2022, further to 1.45 in March 2023, and finally to 1.22 in March 2024.

A current ratio above 1 suggests that VF Corporation has more current assets than current liabilities, which is generally considered a positive sign indicating the company's ability to meet its short-term obligations. However, a decreasing trend in the current ratio over time may raise concerns about the company's liquidity management and its ability to cover short-term liabilities.

It is important for VF Corporation to closely monitor its current ratio and ensure that it maintains a healthy balance between current assets and current liabilities to sustain its operations and financial stability in the long run. Factors such as efficient working capital management and timely collection of receivables may play a crucial role in improving the company's current ratio in the future.